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CSSB 63(STA): "An Act relating to transition provisions related to municipal mergers, consolidations, dissolutions, reclassifications, annexations, detachments, and incorporations; and relating to municipal property taxation in annexed, detached, and newly incorporated areas."

00 CS FOR SENATE BILL NO. 63(STA) 01 "An Act relating to transition provisions related to municipal mergers, consolidations, 02 dissolutions, reclassifications, annexations, detachments, and incorporations; and 03 relating to municipal property taxation in annexed, detached, and newly incorporated 04 areas." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 29.04.040(a) is amended to read: 07 (a) A second class city may be reclassified as a first class city. A first class or 08 home rule city may be reclassified as a second class city. Reclassification is proposed 09 by filing a petition with the department. The department shall investigate the proposal 10 and report its findings to the Local Boundary Commission with its recommendations. 11 The commission shall hold at least one public hearing in the city on the proposal. The 12 commission may amend the petition, [AND] may impose conditions on the 13 reclassification, and may impose any transition requirements that the commission 14 determines to be useful or necessary to accomplish the reclassification. If the

01 commission determines that the reclassification, as amended or conditioned if 02 appropriate, meets applicable standards under the state constitution and commission 03 regulations, meets the standards for incorporation under AS 29.05.011 for the class of 04 city proposed in the reclassification petition, and is in the best interests of the state, it 05 may accept the petition. Otherwise, it shall reject the petition. The commission shall 06 notify the city of its decision. The decision may be appealed under AS 44.62 07 (Administrative Procedure Act). 08 * Sec. 2. AS 29.05.100(a) is amended to read: 09 (a) The Local Boundary Commission may amend the petition, [AND] may 10 impose conditions on the incorporation, and, in addition to those under 11 AS 29.05.140, may impose any transition requirements that the commission 12 determines to be useful or necessary to accomplish the incorporation. If the 13 commission determines that the incorporation, as amended or conditioned if 14 appropriate, meets applicable standards under the state constitution and commission 15 regulations, meets the standards for incorporation under AS 29.05.011 or 29.05.031, 16 and is in the best interests of the state, it may accept the petition. Otherwise it shall 17 reject the petition. 18 * Sec. 3. AS 29.05.140 is amended by adding a new subsection to read: 19 (f) Unless the incorporation takes effect on January 1, the newly incorporated 20 municipality may not levy property taxes before January 1 of the year immediately 21 following the year in which the incorporation takes effect. 22 * Sec. 4. AS 29.06.040 is amended by adding a new subsection to read: 23 (e) Subject to AS 29.06.055, the Local Boundary Commission may impose 24 any transition requirements that the commission determines to be useful or necessary 25 to accomplish a boundary change. 26 * Sec. 5. AS 29.06 is amended by adding a new section to read: 27 Sec. 29.06.055. Property taxes in annexed or detached areas. (a) Unless 28 the annexation takes effect on January 1, the annexing municipality may not levy 29 property taxes in an annexed area before January 1 of the year immediately following 30 the year in which the annexation takes effect. However, notwithstanding other 31 provisions of law, the municipality may provide services in the annexed area that are

01 funded wholly or partially with property taxes during the period before the 02 municipality may levy property taxes in the annexed area. 03 (b) If an area is detached from a municipality, all property taxes that are levied 04 by that municipality on property in the detached area based on an assessment that 05 occurred before the effective date of the detachment remain valid. AS 29.45.290 - 06 29.45.500 apply to the enforcement of those taxes. 07 * Sec. 6. AS 29.06.160 is amended by adding a new subsection to read: 08 (b) Subject to (a) of this section, the Local Boundary Commission may impose 09 any transition requirements that the commission determines to be useful or necessary 10 to accomplish the merger or consolidation. 11 * Sec. 7. AS 29.06.500(a) is amended to read: 12 (a) The Local Boundary Commission may amend the petition, [AND] may 13 impose conditions for the dissolution, and may impose any transition provisions 14 that the commission determines to be useful or necessary to accomplish the 15 dissolution. If the commission determines that the dissolution, as amended or 16 conditioned if appropriate, meets applicable standards under the state constitution and 17 commission regulations, meets the standards for dissolution under AS 29.06.470, and 18 is in the best interest of the state, it may accept the petition. Otherwise it shall reject 19 the petition.